An eBay or Amazon Business

  1. About this business opportunity: This is a great business opportunity. eBay and Amazon are different types of businesses in some cases, but many of the aspects are the same. You can sell on both sites. The main difference is that eBay allows you to sell used items and Amazon only sells new items. eBay is not as strict about their business requirements while Amazon requires you to have a business banking account and business license. With Amazon, you need to get permission to sell certain categories where eBay allows you to sell in any category. The eBay and Amazon business models are different, but if you know what you want to sell, have a good source for getting the product at an attractive price, these two business platforms can become a full time business.
  2. Current market trend: The e-commerce and online shopping trend is soaring in India. You can easily become part of the trend and make this your business.
  3. Level of competition: There is a lot of competition, even in India. The competition is greater in some areas, such as electronics and mobile phones, and less in other categories.
  4. The future: The future is bright. Online shopping will continue to grow in India. As the middle class grows, the online shopping will grow also. The government is keen to put Internet access across the country and in the rural areas. Once that happens, people will shop online as well. The delivery may be different in the rural areas and the methods of payment may vary, but it will still be popular.
  5. Who can start this business: Anyone can start this business but it helps to understand the Internet and to have a good source for the products you sell. You may already have a manufacturing company and want to expand your sales or have a retail store and also sell your products online. This type of business will just expand your market and allow you to sell your products nationwide as well as worldwide.
  6. Skill set you need: You must research and know the market and your target audience. You need to know and understand the products you sell and constantly know the trends, the pricing, and the competition. A good business mind and knowledge of the Internet and Internet marketing is very useful.
  7. Level of risk: There is very little risk other than not being able to sell the products you have purchased for inventory or sell them for a profit. You ust understand and comply with the rules and regulations of eBay and Amazon or they can close your store. If you do not treat your customers fairly, they have the ability to hold your money until the customer is satisfied.
  8. Profit feasibility: The key to profitability is to keep costs low and profits high while remaining competitive. People are making a lot of money on eBay and Amazon. In some cases, you can research what people are paying for items on eBay and then go to Amazon and research the same item. You may see it for less money. People do not always do price comparisons and tend to be impulsive when they shop so you can sell the item at eBay, purchase it at Amazon and have Amazon ship it to your customer as a gift so there is no invoice enclosed. If you use that method, you do not even have any inventory or even see the product.
  9. Investment: The investment can be large or small. Investment costs depend on the price of the products you sell. Start small and grow your business and your investment costs will grow only as you grow the business.
  10. Admin work: As you begin, you may be doing most of the administrative work yourself. As you grow, you will not have time to do everything and must hire either a part time or full time admin person. This person will help you manage the listings and accounting records, answer the phone and email enquiries, and help you manage inventory. Hire someone you can trust – this could be a great position for a spouse or family member.
  11. Infrastructure: Since you are selling on eBay and Amazon, you really do not have much infrastructure. You will need to manufacture or source the products you sell and manage the distribution and inventory. Amazon, however, has a program called the Amazon Fulfillment Center. You can send your inventory to them as long as the items have a UPC code (Unique Product Code). Once you sell something on Amazon, they will take care of the shipping and delivery for a small fee. They will also alert you when inventory gets low and they have other programs to help manage your business.
  12. Team building / staff: You may not need to have a large staff depending on the business model. You may want help packing and shipping products, taking pictures of the products and writing great descriptions. Treat your employees well, pay them well, and they will not steal from you and will be loyal.
  13. Website building: Although you can also have a website, one is not required if you only sell on eBay or Amazon. There are areas within both sites where you can build your profile and have a website within your storefront. If you do not know or understand website marketing, hire someone who is experienced and successful.
  14. Marketing Plan:
    1. Offsite: There is not much marketing you can do offsite. But you can offer a service that can earn you more money. Open a consignment store or become an eBay seller for other people. They bring you what they want sold, you sell it, and they get a percentage of the profit. You can advertise that service offsite.
    2. Internet: There are many ways to utilize Internet marketing with eBay and Amazon sites. You can advertise your stores on eBay where they have a site just for advertising. You can also advertise both sites on online classified advertising sites that may include global coverage. You can get involved with social marketing sites such as Facebook and write articles about the products you sell and refer them to your listings. You can also purchase advertising such as Google Adwords where Google pays you to place ads in your article marketing. Turn this around and pay Google to place your ads in articles and blogs in other’s sites. You can purchase pay per click (PPC) other ways to have your products listed on the first or second page of a search engine through the use of keywords. The good thing about eBay and Amazon is they are so popular, they get lots of traffic at their site. Shoppers will search for what they are looking to purchase or they will go to a category and browse for products. If you have great pictures, a good description, a good reputation as a seller, and competitive pricing, you will do well.
    3. Marketing kit: Make product catalogs, brochures, business cards, and create advertising, both traditional and digital. Promote special sales or events Keep your name and reputation out there so people begin to recognize your name or brand.
  15. Resources: You do not need many resources for this business. You need a computer, Internet access, email, inventory, packing and shipping supplies. Few sellers advertise their telephone number. You need to have a bank account, business bank account is required for Amazon and preferred for eBay, and you need the initial investment to get started.

 

 

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